CINCINNATI Macy's Inc. reported a $59 million first-quarter loss Wednesday because of lower sales and the costs of consolidation, which the company said should start paying off next year.
Losses totaled 14 cents a share in the three months ended May 3, compared with a profit of $36 million, or 8 cents a share, in the same quarter a year ago, Macy's said. Revenue was $5.75 billion, down from $5.92 billion a year ago.
Macy's booked a $55 million after-tax charge, or 13 cents a share, to restructure three business units. Macy's also set aside $14 million after tax, or 3 cents per share, for a potential settlement of a labor class-action lawsuit in California. Stripping out unusual charges, earnings from continuing operations were 2 cents a share, Macy's said.
Macy's shares rose 87 cents, or 3.6 percent, to $24.93 Wednesday. Shares have traded between $20.94 and $45.50 over the past 52 weeks.